Explained: Why off-Budget borrowings fall a statistical illusion

Internal and extra budgetary resources (IEBR) have been pegged at Rs 5.37 trillion for FY20 in the Budget Estimates (BE) against Rs 6.13 trillion in the RE for FY19

Indivjal Dhasmana  |  New Delhi 

It would seem at first glance that Finance Minister Nirmala Sitharaman in her Budget has drastically reduced off-Budget financing for government spending — by almost 13 per cent — over what was given in the Revised Estimates (RE) of 2018-19. Internal and extra budgetary resources (IEBR) have been pegged at Rs 5.37 trillion for FY20 in the Budget Estimates (BE) against Rs 6.13 trillion in the RE for FY19.

However, the Budget document itself says the numbers should be interpreted with caution. In 2018-19, Rs 97,000 crore was provided to Food Corporation of India through loans ...

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Read our full coverage on budget 2019
First Published: Tue, July 09 2019. 01:45 IST